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China welcomes Walmart's e-commerce purchase

(Xinhua) Updated: 2015-08-04 16:52

BEIJING - The Ministry of Commerce (MOC) has welcomed Walmart's purchase of Yhd.com, a move that means the world's largest retailer is the first company to wholly own a Chinese e-commerce platform.

Walmart has been buying stakes in Yhd.com, a smaller version of Alibaba, since 2011. The company announced on July 23 that it had acquired full ownership after China lifted a cap on the number of shares that foreign firms are allowed to hold in Chinese e-commerce platforms in March.

MOC spokesperson Shen Danyang said on Tuesday that the ministry expects Walmart's investment to not only improve the services of Yhd but to be a boon to China's retail sector.

It hopes Walmart will use its experience in procurement, logistics, processing, management and food safety to help the sector's sustainable development, Shen said at a press conference.

Walmart's move shows it is upbeat about the economy and market in China and the government's progress in opening up e-commerce, according to the spokesperson.

Under the deal, Yhd will retain its brand and management.

Yhd had amassed nearly 90 million users by the end of 2014. Its two co-founders, Yu Gang and Liu Junling, announced their departure from the company in mid-July.

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